Stocks have bounced back from the morning lows, and the DJIA even managed to turn positive, but breadth remains poor at more than 2-to-1 negative, and there are more new 12-month lows than highs. The Russell 2000 ETF (IWM) and Nasdaq are lagging.
The positive spin on this action is that the selling is now more correlated, and many stocks with solid fundamentals are being sold simply because they are small-caps or growth names. There isn't any specific bad news. The groups are just out of favor, and there is little interest in trying to catch a bottom.
This sort of action does eventually lead to good opportunities as the "good" is being sold along with the "bad." At some point, the market will sort it out, and the "good" will bounce back better than the "bad," which is what stock pickers want to see.
One example of a group that is being solid in a correlated fashion right now is cannabis. There is some bottom-calling taking place, but the stocks are not showing any signs of support yet. Eventually, there will be some news about SAFE banking, and the sector will come alive again but today is not the day.
There are also some stocks that had great earnings and are filling the gap that was created when the news was chased. A good example is Butterfly Network (BFLY) . The stock had a nice jump on great volume last Monday but has now given it all back and is down to around support at $10. The only thing that has changed is some great earnings. This is a stock that will eventually attract some support, but right now, it is caught in the small-cap selloff, and its individual merits don't matter.